Brian Jeffrey
The HOSE has announced the delisting of HNG shares due to the company posting losses for three consecutive years totaling 1,119 billion VND in 2021, 3,576 billion VND in 2022, and 1,098 billion VND in 2023. Consequently, HOSE will proceed with the delisting of HNG shares as per regulations.
HNG has not yet released its financial report for the second quarter of 2024. However, in the first quarter, the company experienced a 26% decline in net revenue, resulting in a 47 billion VND post-tax loss, marking its 13th quarter in a row of losses.
As of the end of the first quarter of 2024, HNG reported total losses of 8,149 billion VND, significantly reducing its owner’s equity to 2,487 billion VND.
HNG has set a revenue target of 694 billion VND for 2024, a 14.5% increase from 2023, with an expected post-tax loss of 120 billion VND for the year.
Earlier this year, HNG approved a major fruit cultivation and cattle breeding project in Laos’s Attapeu and Sekong provinces. The project, spanning 27,384 hectares and amounting to 18,090 billion VND in investment, aims to operate from 2024 to 2028 and continue for 50 years.
HNG plans to contribute its equity portion of 9,650 billion VND through its subsidiary, Nam Lao Agriculture Investment and Production Business Company, with the remaining 8,440 billion VND in loans to be sourced from domestic and international banks and financial institutions.
The project will mainly focus on fruit cultivation (bananas, mangoes, pomelos, durians), cattle breeding, fruit processing, fiber production, and the production of organic fertilizers and biological pesticides.
The project is projected to yield 624,000 tons of fresh fruit annually, including 25,000 tons for export, and aims to supply 12,000 breeding cattle and produce 17,000 tons of beef annually.
HNG foresees an annual revenue of 13,500 billion VND and profits of 2,450 billion VND from this project, with an 18% profit margin.
Founded in 2010, HAGL Agrico is an agriculture-focused entity under Hoang Anh Gia Lai. In 2021, billionaire Tran Ba Duong acquired HAGL Agrico from HAGL Group’s chairman, Doan Nguyen Duc.
Duong mentioned that Thaco has invested around 8,000 billion VND in restructuring HAGL Agrico, with an additional 12,000 billion VND needed for full restructuring. By 2022, Thaco held 26.7% of HAGL Agrico’s shares and managed the company’s agricultural operations across 36,050 hectares in Laos and Cambodia.
In a recent interview, Tran Ba Duong emphasized Thaco’s assumption of HAGL Agrico’s projects in Laos with a commitment to large-scale agriculture focusing on integration and sustainability.
US$1 = VND25,000
